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Official guidance
Capital Gains Manual

CG63950P · Reliefs: Business Asset Disposal Relief

  • CG63950 · BADR : Introduction and legislation
  • CG63955 · Business Asset Disposal Relief: broad outline
  • CG63956 · Business Asset Disposal Relief: reduction in lifetime limit from 11 March 2020
  • CG63960 · Business Asset Disposal Relief: office responsible
  • CG63965 · Business Asset Disposal Relief: meaning of business
  • CG63970 · Business Asset Disposal Relief: claims to relief
  • CG63975 · Business Asset Disposal Relief: qualifying disposals by individuals
  • CG63980 · Business Asset Disposal Relief: qualifying disposals by individuals: examples
  • CG63985 · Business Asset Disposal Relief: qualifying disposals by trustees
  • CG63990 · Business Asset Disposal Relief: qualifying disposals by trustees: example
  • CG63995 · Business Asset Disposal Relief: qualifying “associated disposals” by individuals
  • CG63996 · Business Asset Disposal Relief: qualifying “associated disposals” by individuals: disposals on or after 18 March 2015
  • CG63997 · Business Asset Disposal Relief: qualifying “associated disposals” by individuals: disposals before 18 March 2015
  • CG63998 · BADR: qualifying “associated disposals” by individuals: meaning of “withdrawal from business”.
  • CG64000 · Business Asset Disposal Relief: qualifying “associated disposals” - examples
  • CG64005 · Business Asset Disposal Relief: relevant business assets
  • CG64006 · Business Asset Disposal Relief: relevant business assets - exclusion of goodwill in certain circumstances from 3 December 2014
  • CG64007 · Business Asset Disposal Relief: time limit for onward sale of shares
  • CG64010 · Business Asset Disposal Relief: disposal of whole or part of business: conditions and disposal of assets after cessation of a business
  • CG64015 · BADR - “disposal of part of a business”: meaning
  • CG64020 · Business Asset Disposal Relief - “disposal of part of a business”: meaning - case law
  • CG64021 · Business Asset Disposal Relief - “disposal of part of a business”: meaning - case law continued
  • CG64030 · Business Asset Disposal Relief: disposal of part of a business, discussion of case law
  • CG64035 · BADR: disposal of part of a business, factors arising from case law
  • CG64036 · BADR: not a disposal of part of a business, factors arising from case law – asset disposals
  • CG64040 · Business Asset Disposal Relief: disposal of whole or part of business: partnerships
  • CG64045 · Business Asset Disposal Relief: disposal of assets after cessation of business
  • CG64050 · Business Asset Disposal Relief: shares or securities: personal company
  • CG64051 · Business Asset Disposal Relief: shares or securities: personal company definition: the economic interest requirement
  • CG64052 · Business Asset Disposal Relief: shares or securities: Enterprise Management Incentive Scheme shares
  • CG64053 · BADR: Dilution elections where relevant share issue is on or after 6 April 2019
  • CG64055 · Business Asset Disposal Relief: trading company and holding company of a trading group
  • CG64060 · Business Asset Disposal Relief: trading company and holding company of a trading group - meaning of "in the course of, or for the purposes of, a trade"
  • CG64065 · Business Asset Disposal Relief: trading company and holding company of a trading group - meaning of preparing to carry on a trade
  • CG64070 · Business Asset Disposal Relief: trading company and holding company of a trading group - meaning of acquiring or starting to carry on a trade, or acquiring shares in a trading company
  • CG64075 · Business Asset Disposal Relief: trading company and holding company of a trading group - meaning of "as soon as is reasonably practicable in the circumstances"
  • CG64080 · Business Asset Disposal Relief: trading company and holding company of a trading group - shares and other assets held otherwise than as investments
  • CG64081 · Business Asset Disposal Relief: trading company and holding company of a trading group - investments in joint venture companies - overview
  • CG64082 · Business Asset Disposal Relief: trading company and holding company of a trading group - investments in joint venture companies - pre-18 March 2015
  • CG64083 · Business Asset Disposal Relief: trading company and holding company of a trading group - investments in joint venture companies - 18 March 2015 and later
  • CG64084 · Business Asset Disposal Relief: trading company and holding company of a trading group – activities conducted through a partnership
  • CG64085 · Business Asset Disposal Relief: trading company and holding company of a trading group - surplus trading property
  • CG64090 · Business Asset Disposal Relief: trading company and holding company of a trading group - the meaning of "substantial"
  • CG64095 · Business Asset Disposal Relief: trading company and holding company of a trading group - investments in shares under the Corporate Venturing Scheme (CVS)
  • CG64100 · Business Asset Disposal Relief: trading company and holding company of a trading group - applications for a ruling on the status of a company
  • CG64105 · Business Asset Disposal Relief: date of cessation of a business
  • CG64110 · Business Asset Disposal Relief: officers and employees
  • CG64115 · Business Asset Disposal Relief: shares/securities: liquidation of company
  • CG64120 · Business Asset Disposal Relief: calculation: introduction: scope of guidance
  • CG64125 · Business Asset Disposal Relief: calculation of the relief - general TCGA92/S169N
  • CG64130 · Business Asset Disposal Relief: calculation of the relief - examples
  • CG64135 · Business Asset Disposal Relief: calculation of the relief: postponed or deferred gains
  • CG64136 · Business Asset Disposal Relief: calculation of the relief: rolled over gains
  • CG64137 · Business Asset Disposal Relief: calculation of the relief: gifts of business assets
  • CG64140 · Business Asset Disposal Relief - calculation - disposals by trustees: more than one beneficiary
  • CG64145 · Business Asset Disposal Relief - calculation - restrictions on relief for “associated disposals”
  • CG64155 · Business Asset Disposal Relief: shares/securities: company reorganisations - share exchanges etc.
  • CG64160 · Business Asset Disposal Relief: share exchanges etc. involving QCBs: exchanges from 6 April 2008 to 22 June 2010
  • CG64161 · Business Asset Disposal Relief: share exchanges etc. involving QCBs: exchanges on or after 23 June 2010
  • CG64165 · Business Asset Disposal Relief: share exchanges etc. involving QCBs before 6th April 2008 - deferred gains coming back into charge on or after 6th April 2008 - transitional rules
  • CG64166 · Business Asset Disposal Relief: share exchanges etc involving QCBs before 6th April 2008 - deferred gains coming back into charge on or after 6th April 2008 - transitional rules - examples
  • CG64170 · Business Asset Disposal Relief: Enterprise Investment Scheme and Venture Capital Trust investments before 6th April 2008 - deferred gains coming back into charge after 6th April 2008 - transitional rules
  • CG64171 · Business Asset Disposal Relief: Enterprise Investment Scheme and Venture Capital Trust investments before 6th April 2008 - deferred gains coming back into charge after 6th April 2008 - transitional rules - examples
  • CG64172 · Business Asset Disposal Relief: reduction in lifetime limit from 11 March 2020: anti-forestalling rule: unconditional contracts
  • CG64173 · Business Asset Disposal Relief: reduction in lifetime limit from 11 March 2020: anti-forestalling rule: elections under Section 169Q
  • CG64174 · Business Asset Disposal Relief: rates from April 2025 and from April 2026: anti-forestalling rule: unconditional contracts
  • CG64175 · Business Asset Disposal Relief: rates from April 2025 and from April 2026: anti-forestalling rule: elections under Section 169Q
  1. Reliefs: Business Asset Disposal Relief: contents
  2. BADR : Introduction and legislation

CG63950 | BADR : Introduction and legislation

From HM Revenue & Customs · Capital Gains Manual

The content in this manual covers a much higher level of detail compared to say a Helpsheet supporting the Self Assessmnent Tax Return. If you are looking for an introduction to the main rules for the relief for a particular year please see the Business Asset Disposal Relief (Self Assessment helpsheet HS275) on GOV.UK and select the year you are considering.

Entrepreneurs’ Relief was renamed in Finance Act 2020 with effect from 6 April 2020. The new name is generally used in this guidance but should be read as applying to times before that date.

Finance Act 2008 introduced Entrepreneurs’ Relief for gains arising from a material disposal of business assets by individuals and the trustees of certain settlements and disposals of other business assets associated with a material disposal of business assets where certain conditions are met.

The relief was first announced in January 2008 with draft legislation being published shortly after.

Entrepreneurs’ Relief was introduced by FA2008/S7 and Sch3 which inserted the provisions into TCGA 1992 from S169H to S169S. FA2008/Sch3/paragraph5 contains the commencement provisions for Entrepreneurs’ Relief. It applies to disposals made on or after 6 April 2008.

There have been a number of changes affecting the rules since 2008. Care should therefore be taken to consider the rules as they applied at the date of any relevant disposal.

A general overview of the structure of the guidance and provisions is in the table below.

For convenience the statutory references in TCGA92 are used throughout this guidance. They cover the following areas.

Manual page-Legislation
CG63955IntroductionTCGA92/S169H
CG63970ClaimsTCGA92/S169M
CG63975Material Disposal of Business Assets by IndividualTCGA92/S169I
CG63985Disposal of Trust AssetsTCGA92/S169J
CG63995Disposal associated with relevant material disposalTCGA92/S169K
CG64005Relevant Business AssetsTCGA92/S169L
CG64006Exclusion of GoodwillTCGA92/S169LA
CG64010Disposal of whole or part of business: conditions and disposal of assets after cessation of a business-
CG64052Enterprise Management Investment Scheme shares-
CG64053Dilution electionsTCGA92/S169SB-SH
CG64055Meaning of trading company and holding company of a trading groupTCGA92/S169SA
CG64125Amount of Relief - generalTCGA92/S169N
CG64135Deferred gainsTCGA92/S169T-V
CG64140Amount of Relief - Trust provisionsTCGA92/S169O
CG64145Amount of Relief - Special provisions for certain associated disposalsTCGA92/S169P
CG64155Reorganisations: disapplication of section 127TCGA92/S169Q
CG64160Reorganisations: QCB’sTCGA92/S169R
-InterpretationTCGA92/S169S
CG64165Transitional provisions - Reorganisations: QCB’sFA08/SCH3/PARA7
CG64170Transitional provisions - Enterprise Investment SchemesFA08/SCH3/PARA8
-and Venture Capital Trusts-
CG64172Reduction in lifetime limit from 11 March 2020 – anti-forestalling rule for unconditional contractsFA20/SCH3/PARA3
CG64173Reduction in lifetime limit from 11 March 2020 – anti-forestalling rule for Section 169Q electionsFA20/SCH3/PARA4-5
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